Source: Zuunii Medee, Ardiin Arkh                         Date: 17 February, 2011

The Government has approved a plan to implement the national strategy to support the development of the private sector. Capital resources would be included in local budgets, and will include proceeds from international aid.

The national strategy calls upon the state to establish a favorable environment for running business, to raise competitive skills in the private sector, to develop mutually beneficial partnership and cooperation between the state and the private sector and to increase jobs and labor productivity.

The strategy, to be implemented in two phases, between 2011 and 2013 and between 2014 and 2016, includes the following targets:

·                     To establish a favorable business environment;

·                     To support the private sector through adoption of correct economic, monetary, investment, and foreign trade policies;

·                     To expand cooperation between the state and the private sector and to provide state service transparently and promptly;

·                     To support the private sector in generating employment through arranging professional training and adopting a good human resource policy.

As on July 1, 2010, 68,000 businesses, large and small, were registered, of which 40,000 were active, producing between 64.4% and 71.9% of the national GDP in the last four years. They also paid 30% of the total tax revenue and employed 800,000 people, or 70% of the total work force.